Stock of mining major Vedanta fell nearly 4 per cent today after the Anil Agarwal-led firm announced its earnings for the quarter ended September 2022. The mining conglomerate reported a 60.8 per cent fall in consolidated net profit at Rs 1,808 crore in Q2 on the back of higher expenses. The company had posted a consolidated net profit of Rs 4,615 crore in the year-ago period.
Vedanta stock opened 3.7 per cent lower at Rs 274.30 against the previous close of Rs 284.85. At 10:53 am, shares of Vedanta were trading 1.07 per cent lower at Rs 281.80. The large cap stock trades higher than the 20 day, 50 day and 100 day moving averages but lower than 5 day and 200 day moving averages.
Vedanta shares have lost 7.15 per cent in one year and fallen 17.33 per cent since the beginning of the year.
Total 3.97 lakh shares of the firm changed hands amounting to a turnover of Rs 11.15 crore on BSE. Market cap of the firm fell to Rs 1.04 lakh crore.
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The share hit a 52-week high of Rs 440.75 on April 11, 2022 and a 52-week low of Rs 206.10 on July 1, 2022.
Profit dropped after expenses during the July-September period rose to Rs 33,221 crore from Rs 23, 171 crore in the year-ago period.
Consolidated income during the quarter under review rose to Rs 37,351 crore from Rs 31,074 crore last year. Vedanta is a diversified natural resources company.
Financial services firm Motilal Oswal has a neutral stance on the stock post earnings. It has given a target price of Rs 255, down 10 per cent against the previous close of Rs 285.
“With a bearish outlook on metal prices and with a possibility of a ban leading to a run up, we reiterate our Neutral rating on Vedanta as we believe the stock is fully valued in the current environment. We keep our SoTP-based target price unchanged at Rs 255. While we marginally reduce our aluminum price assumption, savings from captive/linkage coal should help partly offset the downtrend,” said Motilal Oswal.
